RECONCILIATION OF NET OPERATING ACTIVITY BEFORE APPROPRIATIONS TO NET CASH USED BY OPERATING ACTIVITY

	Federal Family Education Loan Program	Federal Direct Student Loan Program	All Other Activities	Department of Education Consolidated Balances
Operating Activity funded by appropriations	$(2,746,873)	$(785,583)	$(25,823,459)	$(29,355,915)
Adjustments to Reconcile Net Operating Activity     to Net Cash Used by Operating Activities
Allowance for Subsidy	--	506,026	1,043	507,069
Changes in:
Decrease (Increase) in Credit Program       Receivable, Net:
Defaulted Guaranteed Loans	301,843	--	--	301,843
Direct Loans	--	(66,551)	(1)	(66,552)
Facilities Loans	--	--	(14,032)	(14,032)
Decrease in Advances in Guaranty         Agencies, Net	1	--	--	1
Decrease (Increase) in Accounts Receivable	(2,214)	--	91	(2,123)
Increase in Other Receivables, Net	--	--	(39,267)	(39,267)
Decrease in Advances and Prepayments	--	--	59,808	59,808
Increase in Interest Payable to U.S. Treasury	--	--	1,910	1,910
Increase in Liabilities for Loan Guarantees	81,523	--	6	81,529
Increase in Accrued Grant Liability	--	--	16,501	16,501
Increase (Decrease) in Contractual         Services Liability	1,772	16,096	(5,732)	12,136
Increase (Decrease) in Accrual Salaries         and Benefits	(1,092)	792	(10,680)	(10,980)
Increase in Other Accrued Liabilities	408	--	42,391	42,799
Increase in Workers Compensation Liability	114	86	1,179	1,379
Net Adjustments	382,355	456,449	53,217	892,021
Net Cash Used By Operating Activities	$(2,364,518)	$(329,134)	$(25,770,242)	$(28,463,894)

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[Cash Provided (Used) by Investing and Financing Activities]

[Supplemental Schedule of NonCash Investing Activities]